5 stocks to watch next week

One of Saxo’s leading market analysts, Jessica Amir, has highlighted five stocks to watch next week based on the timing of the news flow.

Albemarle

“Albemarle is the largest lithium producing company in the world by market size with a value of US$ 31.3 billion. It has one of the widest customer groups, selling to Toyota, Ford, Mercedes-Benz, Tesla and GM, and Panasonic. Albemarle is due to report its financial results on February 16th and so is the outlook, which will be a reality for the lithium industry.

BHP

“BHP is the world’s largest mining company by market size, with a value of AUD$243 billion. BHP has historically generated some of the strongest cash flows globally. Because of this, it also pays the highest dividend in the world, consistently. Consensus expects BHP to pay a one-year gross dividend of 14%. For the last reporting period, BHP generated approximately 48.7% of its revenue from iron ore, 26.7% from copper and 24.6% from coal. BHP is also trying to take over copper giant Oz Minerals, while also moving into fertilizers – with plans to become the world’s biggest fertilizer company. The latest financial report on BHP’s earnings is 21/12/2019. That will tell us more about the demand for copper, as well as iron ore.

Pilbara Minerals

“Pilbara Minerals is Australia’s largest lithium miner. It has a market value of AU$14 billion. Pilbara customers include LG Chem, and the Great Wall Motor Company of China. And believe it or not, one of Pilbara Minerals’ customers is actually China Genfeng Lithium Corp, which is the largest lithium company in China. Pilbara will report its financial results on February 22.

Rio Tinto

“Rio Tinto is the second largest diversified miner in the world, with a value of $178 billion. In the last reporting year Rio made 58.1% of its revenue from iron ore, 21.5% from aluminum and 10.9% from copper, and the rest from other metals. Rio is expected to pay a full-year gross dividend of about 11% this year. Rio reported its full-year financial results on February 22 and its outlook for 2023, which will be interesting as it is a major aluminum producer.

Southern Copper

“South Copper Corp is another big copper miner. Its size is not as big as BHP or RIO but its market cap size is US$57.3 billion. Last year reported the highest yield of copper. The market expects Southern Copperto pay a full-year gross dividend of 5.3% this year.